IATA: Freight cargo key for airlines rebound

The International Air Transport Association (IATA) has recently released a report highlighting the crucial role that air freight and cargo will play in the revival of the aviation sector post-pandemic. In a recent interview on CNBC Africa, Julie Mutoni, the Country Manager of Multilines International, shed light on the significance of air freight and cargo in the African aviation industry. Mutoni emphasized the impact of the COVID-19 pandemic on economies worldwide, with Africa experiencing a recession for the first time in years. The aviation sector was one of the hardest-hit industries, leading to a shift in focus for some airlines. Mutoni pointed out that Ethiopian Airlines, for example, saw an opportunity for growth in the air freight sector, contributing 49% of total revenues for airlines that made the shift. This marked a significant increase of over 30% in revenue generation. Looking ahead to 2022, Mutoni highlighted a projected growth of 49% in the global air freight sector due to undersupply, indicating a positive outlook for the industry's rebound in Africa. Mutoni discussed the growth prospects for logistics companies, emphasizing that the African air freight and logistics market is expected to grow by approximately 6% in the next three years. She noted that Africa is composed of diverse economic regions, each with unique growth expectations, leading to a growing demand for quality logistics services across the continent. Mutoni identified key growth centers in the logistics sector, including Algeria, Angola, the Democratic Republic of Congo, Kenya, Tanzania, and Rwanda. Rwanda, in particular, has positioned itself as a logistics hub, capitalizing on opportunities offered by the African Continental Free Trade Area agreement. The government's investments in infrastructure, such as ports linked to major trade routes, have bolstered Rwanda's logistics capabilities. Multilines International has established a robust global network to capitalize on the growth in the logistics sector and provide cutting-edge services to clients in the region. Mutoni's insights underscore the critical role of air freight and cargo in driving the rebound of the aviation sector in Africa, showcasing the sector's resilience and adaptability in the face of challenges. As the industry continues to navigate the post-pandemic landscape, collaboration and innovation in the air freight and logistics space will be key to ensuring sustained growth and recovery.